Navigating Consumer Rights: Legal Protections Against Unfair Practices

Every day, Indian consumers are bombarded with advertisements that promise miraculous health cures, guaranteed investment returns, or food products that are “100% natural” and “scientifically proven.” Behind each of these claims lies a legal question: is the advertiser playing by the rules? India has built a layered framework of consumer protection laws precisely to answer that question – and to penalise those who don’t. Understanding these laws is not just academic; it is how informed citizens hold businesses and regulators accountable.

The foundation: Consumer Protection Act, 2019 🔗

The Consumer Protection Act, 2019 is the cornerstone of India’s consumer law architecture. It replaced the older 1986 Act to address the realities of e-commerce, digital transactions, and modern marketing practices. One of its most significant contributions is a comprehensive definition of unfair trade practices under Section 2(47) – covering everything from false representations about product quality and forged sponsorships to non-disclosure of hidden charges and unauthorised sharing of a consumer’s personal data.

The 2019 Act also created the Central Consumer Protection Authority (CCPA), a body empowered to investigate violations of consumer rights, issue recall orders for dangerous goods, and take direct action against misleading advertisements. Under Section 21 of the Act, the CCPA can impose a penalty of up to ₹10 lakh on manufacturers or endorsers of false or misleading advertisements, with repeat offenders facing fines up to ₹50 lakh and imprisonment of up to five years. This was a dramatic upgrade from the older, more passive regime.

The three-tier redressal system 🔗

Consumer disputes are resolved through a three-tier Commission structure. The District Consumer Disputes Redressal Commission handles claims up to ₹1 crore, the State Commission covers claims between ₹1 crore and ₹10 crore, and the National Commission deals with claims above that threshold. Consumers can also file complaints online through the E-Daakhil Portal, making access to justice considerably easier.

Protecting investors: SEBI’s advertisement regulations 🔗

Consumer protection does not stop at grocery stores or pharmacies – it extends to the financial markets. The Securities and Exchange Board of India (SEBI) regulates how investment products and services are advertised to the public. Misleading investment ads are a serious concern, particularly given the explosion of financial influencers – commonly called “finfluencers” – on social media platforms.

SEBI’s Advertisement Code for Investment Advisers (issued April 2023) prohibits investment advisers and research analysts from making superlative claims or promises of assured returns. All advertisements must carry a standard risk warning. SEBI has also tightened regulations around finfluencers by requiring them to register, ensuring accountability and transparency in their promotional activities. Non-compliant intermediaries face suspension or cancellation of their registration. These measures reflect how consumer protection in the financial sector requires specialised rules that go beyond what a general consumer law can provide.

Curbing health fraud: Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 🔗

One of India’s oldest sector-specific consumer protection laws, the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954, targets a very particular problem: advertisements that falsely claim drugs, talismans, mantras, or unscientific remedies can cure serious diseases. The law was enacted to prevent self-medication and to stop consumers from being exploited by pseudoscientific health claims.

Sections 3 to 6 of the Act lay out the core prohibitions. No person can advertise any drug or remedy claiming it can treat conditions listed in the Act’s Schedule – which includes diseases like epilepsy, cancer, and sexual disorders – or suggest magical properties without scientific basis. The Act also bans the import and export of documents containing such objectionable advertisements, treating them as prohibited goods under customs law.

Penalties and a proposed amendment 🔗

On the first conviction under the 1954 Act, a person can face up to six months’ imprisonment, a fine, or both. Subsequent convictions carry a sentence of up to one year. A proposed 2020 amendment sought to significantly increase these penalties – to two years’ imprisonment and a fine of up to ₹10 lakh for a first offence, and five years with a fine of ₹50 lakh for subsequent offences – bringing them in line with newer consumer protection laws. Critics have long noted that the Act is rarely enforced and that its Schedule is outdated, as several diseases listed as incurable are now treatable and newer conditions like HIV/AIDS are absent from the list.

Food safety and honest labelling: The Food Safety and Standards Act, 2006 🔗

India’s food advertising landscape is governed primarily by the Food Safety and Standards Act, 2006 (FSS Act) and the authority it created – the Food Safety and Standards Authority of India (FSSAI). Before 2006, food regulation was spread across multiple ministries and departments, creating serious gaps. The FSS Act brought everything under one roof and, critically, recognised misleading food advertisements as standalone offences.

The Food Safety and Standards (Advertising and Claims) Regulations, 2018 – framed under the FSS Act – mandate that all food advertising claims must be truthful, unambiguous, and backed by scientific evidence. Health claims must be supported by peer-reviewed human intervention studies conducted under rigorous clinical practices. Under Section 53 of the FSS Act, FSSAI can impose penalties of up to ₹10 lakh per offence for misleading advertisements. Brand owners, publishers, and anyone responsible for the false claim can be held liable.

FSSAI in action: Recent enforcement 🔗

FSSAI’s enforcement activity provides a clear picture of how these laws operate in practice. In 2012, FSSAI initiated prosecution against Heinz India for a Complan advertisement that falsely claimed children could grow two times taller after consuming the product, holding it violative of Section 24 of the FSS Act. In 2024, FSSAI directed beverage companies to remove “100% fruit juice” claims from labels for reconstituted juice products. In 2025, FSSAI went further and banned the use of “100%” claims on food labels entirely, ruling that such terms have no regulatory definition and can easily mislead consumers.

Government data shows that in 2024-25 alone, authorities tested over 1.7 lakh food samples, found more than 34,000 non-conforming, and imposed penalties amounting to ₹35.74 crore. FSSAI has also signed an MoU with the Advertising Standards Council of India (ASCI) to enhance joint monitoring of misleading food and beverage advertisements across digital platforms.

Key case law: Connecting principles to practice 🔗

Case law has been instrumental in clarifying the reach of consumer protection statutes. In Indian Medical Association v. V.P. Shantha, the Supreme Court held that the Consumer Protection Act applies to medical services, meaning patients harmed by professional negligence can claim compensation before consumer forums – a ruling that significantly expanded the definition of “consumer” in India’s legal framework.

In Gurshinder Singh v. Shriram General Insurance Co. Ltd. (2020), the Supreme Court reiterated that insurance claims should not be denied on purely procedural grounds if the substantive cause of delay has been adequately explained. The Court stressed that rejecting a legitimately established claim amounts to an unfair trade practice – demonstrating how courts use the Consumer Protection Act to enforce substantive fairness, not just technical compliance.

The role of the Advertising Standards Council of India (ASCI) 🔗

While ASCI is a self-regulatory body and not a statutory authority, it plays an important complementary role. It operates under a code of conduct that requires advertisements to be truthful, not misleading, and prepared with a sense of responsibility to consumers. ASCI can direct advertisers to modify or withdraw objectionable content. Its value lies in speed – ASCI can act faster than statutory bodies, making it a useful first line of response before formal legal proceedings are initiated.

Consumer activism: Your role in this framework 🔗

Laws are only as effective as their enforcement, and enforcement depends heavily on consumers reporting violations. Practically every mechanism described above has a consumer-facing complaint channel. The CCPA can be approached for unfair trade practices and misleading advertisements under the Consumer Protection Act, 2019. FSSAI maintains an online portal and the Food Safety Connect app specifically for consumers to report misleading food claims and labelling defects. SEBI encourages investors to report non-compliant financial advertisements. Filing a complaint is no longer a complex process reserved for lawyers – it is a right that any consumer can exercise.

What do you think? With so many laws protecting consumers from misleading advertisements, why do deceptive ads continue to thrive in India – is the real problem one of enforcement, consumer awareness, or something else entirely? And should platforms like YouTube and Instagram be held legally liable when finfluencers or food brands run misleading ads through their networks?

References

1. https://prsindia.org/billtrack/the-consumer-protection-bill-2019
2. https://blog.ipleaders.in/consumer-protection-act-2019-2/
3. https://edaakhil.nic.in
4. https://technocratiq.com/how-is-sebi-controlling-the-bfsi-intermediaries-against-advertising-malpractices-and-what-are-the-official-circulars-given-in-india/
5. https://www.indiacode.nic.in/handle/123456789/1412
6. https://lawbhoomi.com/drugs-and-magic-remedies-objectionable-advertisements-act-1954/
7. https://en.wikipedia.org/wiki/Drugs_and_Magic_Remedies_(Objectionable_Advertisements)_Act,_1954
8. https://www.livelaw.in/columns/food-safety-and-standards-authority-fssai-food-advertising-consumer-protection-act-212421
9. https://www.shauryam.co.in/why-advertisement-and-claim-compliance-matters/
10. https://www.fssai.gov.in/
11. https://www.storyboard18.com/advertising/rs-133-cr-penalties-5-lakh-samples-tested-in-last-3-yrs-govt-cracks-down-on-misleading-ads-food-claims-86056.htm
12. https://fssai.gov.in/cms/compliancefaq.php